| Stimulus Prospects Give Much-Needed Boost to the Material Sector | |
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Support from Central Banks Boosted Oil Prices and US Stocks (Continued from Prior Part) Material sector
The material sector, which has been battered because of the global growth concerns, the rising US dollar, and the falling commodity prices, took off on Thursday on anticipation of monetary stimulus from the European Central Bank (or ECB). The ECB stated on January 21 that it would reconsider its policy in its March meeting in order to help combat the slowdown in the economic activity and the turmoil in the stock markets. And if the need arises, the bank said it is ready to extend its stimulus measures. This assurance boosted investors’ confidence and the material and mining stocks rose in anticipation of rising demand for commodities in the near future. The below table shows the material sector stocks that advanced on January 21, 2016.
The yields of the above stocks as of January 21 are as follows:
- Newmont Mining (NEM): 0.8%
- Freeport-McMoRan (FCX): 6.4%
- International Paper (IP): 0.5%
- Nucor (NUE): 0.1%
- Vulcan Materials (VMC): 0.8%
- Alcoa (AA): 5.2%
- Martin Marietta Materials (MLM): 1.2%
- Allegheny Technologies (ATI): 6.0%
Technical and moving average analysis
- The beta values for the above stocks are more than one, implying that the stocks are volatile and sensitive to the broad market movement with the exception of Newmont Mining (NEM), whose beta is less than one. This implies less sensitivity to the market movement. Besides, NEM is engaged in gold mining, and gold moves based on different dynamics and doesn’t always follow the market.
- Among the above stocks, Freeport-McMoRan (FCX) gained the most. The copper-producing giant has suffered some huge losses since the Chinese turmoil and manufacturing contraction in 2015. China, being the largest consumer of industrial metals, impacted mining stocks. Therefore, the trailing-one-year return of FCX is -78.2%. However, it gained 6.4% on January 21 on anticipation of economic stimulus.
- All the stocks traded at prices that were below their respective 100-day, 50-day, and 20-day moving averages, implying downward patterns in these stocks’ movement.
- These stocks on an average are 36% below their 100-day moving averages, 24% below their 50-day moving averages, and 14% below their 20-day moving averages.
In the next article, we’ll look at the performances of the telecommunication stocks of the SPDR S&P 500 ETF (SPY).
Continue to Next Part Browse this series on Market Realist:
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Freeport McMoRan Copper and Gold Inc.
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PRODUCTEUR |
CODE : FCX |
ISIN : US35671D8570 |
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ProfilIndicateurs de MarchéVALEUR : Projets & res.Communiqués de PresseRapport annuelRISQUE : Profile actifsContactez la cie |
Freeport McMoran est une société de production minière d'or et de cuivre basée aux Etats-Unis D'Amerique. Freeport McMoran est productrice d'or, de cuivre, d'argent, de cobalt et de molybdène au Chili, au Perou, en Indonesie et en Republique Democratique Du Congo, en développement de projets de cuivre au Perou, et détient divers projets d'exploration au Chili. Ses principaux projets en production sont CANDELARIA, EL ABRA, CHINO - MILL, HENDERSON, MIAMI - ROM LEACH, MORENCI - MILL, OJOS DEL SALADO, MORENCI et MORENCI - ROM LEACH au Chili, GRASBERG, SIERRITA et BAGDAD en Indonesie, TENKE FUNGURUME et TYRONE en Republique Democratique Du Congo et CERRO VERDE au Perou, son principal projet en développement est SAFFORD au Perou et ses principaux projets en exploration sont BAGDAD - ROM LEACH et CHINO - ROM LEACH au Perou et CERRO VERDE - MILL, CERRO VERDE - CRUSHED LEACH, CERRO VERDE - ROM LEACH, EL ABRA - ROM LEACH et CLIMAX au Chili. Freeport McMoran est cotée aux Etats-Unis D'Amerique et en Allemagne. Sa capitalisation boursière aujourd'hui est 73,1 milliards US$ (68,3 milliards €). La valeur de son action a atteint son plus bas niveau récent le 06 mars 2020 à 10,00 US$, et son plus haut niveau récent le 26 avril 2024 à 50,50 US$. Freeport McMoran possède 1 448 000 000 actions en circulation. |